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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.
SEE Attachment for better view of the questions!!!!
No.Account TitleDebitCredit101Cash$39,164 106Accounts receivable 13,518 126Computer supplies 2,645 128Prepaid insurance 1,980 131Prepaid rent 2,980 163Office equipment 8,100 164Accumulated depreciation—Office equipment $0167Computer equipment 22,800 168Accumulated depreciation—Computer equipment 0201Accounts payable 0210Wages payable 0236Unearned computer services revenue 0301S. Rey, Capital 66,000302S. Rey, Withdrawals 6,000 403Computer services revenue 36,744612Depreciation expense—Office equipment 0 613Depreciation expense—Computer equipment 0 623Wages expense 2,150 637Insurance expense 0 640Rent expense 0 652Computer supplies expense 0 655Advertising expense 1,728 676Mileage expense 684 677Miscellaneous expenses 200 684Repairs expense—Computer 795 Totals$102,744 $102,744
Business Solutions had the following transactions and events in December 2017.
Dec.2 Paid $1,000 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. 3 Paid $420 cash for minor repairs to the company’s computer. 4 Received $4,950 cash from Alex’s Engineering Co. for the receivable from November. 10 Paid cash to Lyn Addie for six days of work at the rate of $105 per day. 14 Notified by Alex’s Engineering Co. that Business Solutions’ bid of $8,000 on a proposed project has been accepted. Alex’s paid a $1,600 cash advance to Business Solutions. 15 Purchased $1,300 of computer supplies on credit from Harris Office Products. 16 Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. 20 Completed a project for Liu Corporation and received $6,075 cash. 22–26 Took the week off for the holidays. 28 Received $3,800 cash from Gomez Co. on its receivable. 29 Reimbursed S. Rey for business automobile mileage (500 miles at $0.27 per mile). 31 S. Rey withdrew $1,200 cash from the company for personal use.
SEE Attachment for better view of the questions!!!!
Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2017.
4. Prepare an income statement for the three months ended December 31, 2017.
5. Prepare a statement of owner’s equity for the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31, 2017.
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